Our Partner, Mehdi Jaouadi, was recently featured in Reuters, where he shared his perspective on VinFast’s plan to sell its Vietnamese manufacturing business and shift nearly USD 7 billion in debt off its books.
The article examines VinFast’s proposed restructuring, which would see the Vietnamese EV maker sell its domestic manufacturing business for 13.3 trillion Vietnamese dong, or around USD 506 million, to a group of investors who would also assume roughly USD 6.9 billion in debt. According to VinFast, the move would support its transition toward an asset-light model focused more on research and product development than manufacturing.
Within this context, Mehdi notes that the move makes sense from a strategic and financial perspective, as it could provide a stronger foundation for VinFast’s future growth. At the same time, he highlights that the transaction raises governance concerns, particularly due to its complexity and the involvement of investors with links to Vingroup and its founder.
Mehdi also points to questions around Future Investment and Trading Development, or FIRD, which became the lead buyer shortly after ownership changes. He notes that it is unclear why FIRD took on this role so soon after these changes.
The broader article also discusses the layered transaction structure, where the manufacturing business would first be acquired by several parties before ownership is reshuffled again. In this context, Mehdi highlights questions around the role and involvement of Ngoc Quy Investment, as the company is part of the initial transaction structure but is not expected to retain a stake once the deal is completed.
By examining the strategic benefits and governance questions surrounding the restructuring, the article raises important considerations around transparency, related-party transactions, and how EV companies balance financial sustainability with investor confidence during periods of rapid growth.
In this article, Mehdi covers several key topics:
Why VinFast’s asset-light restructuring makes sense from a strategic and financial perspective
How shifting roughly USD 6.9 billion in debt could provide a stronger foundation for VinFast’s growth
Why the transaction raises governance concerns due to its complexity and investor links to Vingroup and its founder
The unclear timing behind FIRD becoming the lead buyer shortly after ownership changes
Questions around the role and involvement of Ngoc Quy Investment, which is part of the initial transaction structure but is not expected to retain a stake
Read the full article here.
About Our Expert
Mehdi Jaouadi is a Partner at YCP, leading the firm’s Thailand and Vietnam offices. He has over 14 years of experience in business development and consulting across automotive, construction, manufacturing, oil & gas, FMCG, healthcare, and renewable energy sectors. His career spans Asia, Europe, and Latin America, with a focus on market expansion, growth strategy, and supporting business transformation for multinational companies.
